Question

How does opportunity cost affect people's wants and needs?
a.It changes the supply and demand of goods.
b.It requires them to make a choice.
c.It requires them to be producers and consumers.
d.Opportunity cost does not impact wants and needs.

Answer 1

Answer: b.It requires them to make a choice.  

Opportunity cost does impact our wants and needs because it requires us to make a choice.

. If we decide and choose which want or need to satisfy with the resource available, there will be other wants that will be left unsatisfied.  

This want that is forgone is called the ‘opportunity cost’, also known as ‘the next best alternative’.